Monolithic Power Systems, Inc. (MPWR) reported healthy fourth-quarter 2023 results, with the bottom and top lines beating the Zacks Consensus Estimate.Net IncomeOn a GAAP basis, net income fell to $96.9 million or $1.98 per share from $119.1 million or $2.45 per share in the prior-year quarter. The decline was primarily due to an increase in operating expenses.Non-GAAP net income was $140.9 million or $2.88 per share compared with $154 million or $3.17 per share in the year-ago quarter. The bottom line surp ...

Financial Data and Key Metrics Changes - Fourth quarter 2023 GAAP gross margin was 55.3%, down 20 basis points from the third quarter of 2023 and 290 basis points below the fourth quarter of 2022 [23] - Fourth quarter 2023 revenue was $454.0 million, down 4.4% from the third quarter of 2023 and down 1.3% from the fourth quarter of 2022 [28] - Full-year 2023 revenue reached a record $1.82 billion, marking the 12th consecutive year of revenue growth [31] Business Line Data and Key Metrics Changes - Fourth quarter 2023 revenue for enterprise data grew by 88.4% [28] - Automotive revenue for 2023 increased by 31.5% year-over-year to $394.7 million, representing 21.7% of total revenue [34] - Consumer revenue decreased by 26.6% year-over-year to $234.7 million, representing 12.9% of total revenue [39] Market Data and Key Metrics Changes - Communications revenue fell by 18.5% to $204.9 million due to lower 4G and 5G infrastructure sales [37] - Industrial revenue decreased by 21.2% to $172.7 million, reflecting lower sales in industrial automation applications [38] - Storage and computing revenue grew by 8.5% to $491.1 million, driven by increased sales of products for notebooks [36] Company Strategy and Development Direction - The company is expanding into a new $1 billion market with the acquisition of Axign B.V., focusing on programmable multi-core digital signal processors [31][32] - Continued investment in R&D and diversification of the operating footprint is emphasized to position the company for future growth [33][41] - The company aims to maintain a competitive edge by ensuring product quality and performance to outperform competitors [3] Management's Comments on Operating Environment and Future Outlook - Management noted that customer ordering patterns were oscillating due to economic uncertainty, but there was a nominal improvement in Q4 [40] - The company remains cautious about near-term business conditions but believes its long-term growth strategy is intact [45] - Future revenue guidance for Q1 2024 is projected between $437.0 million and $457.0 million, with gross margins expected to remain stable [54] Other Important Information - The company generated operating cash flow of approximately $153.3 million in Q4 2023 [30] - Total stock-based compensation expense for Q4 2023 was $41.1 million, up from $33.6 million in Q3 2023 [26] - The company continues to execute a share buyback program and announced a 25% increase in its quarterly dividend to $1.25 per share [56] Q&A Session Summary Question: Can you elaborate on the Axign acquisition and its market prospects? - The acquisition aims to enhance capabilities in audio signal processing and is expected to revolutionize audio experiences in various applications [100] Question: What are the expectations for the enterprise data segment in 2024? - The enterprise data segment is anticipated to continue growing, driven by demand for AI and traditional CPU data center solutions [80] Question: How does the company view competition in the automotive sector? - While there has been some softness in the automotive market, the company expects to see a ramp in demand, particularly in electric vehicles [94] Question: What is the outlook for the storage and computing business? - The company has become more competitive in the notebook segment, offsetting declines in SSD sales, and anticipates gradual improvement in the market [141] Question: How does the company plan to manage inventory levels? - The company is currently running below its long-term inventory targets and is focused on managing inventory carefully in response to market conditions [130]

For the quarter ended December 2023, Monolithic Power (MPWR) reported revenue of $454.01 million, down 1.3% over the same period last year. EPS came in at $2.88, compared to $3.17 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $452.13 million, representing a surprise of +0.42%. The company delivered an EPS surprise of +1.05%, with the consensus EPS estimate being $2.85.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings - ...

Monolithic Power (MPWR) came out with quarterly earnings of $2.88 per share, beating the Zacks Consensus Estimate of $2.85 per share. This compares to earnings of $3.17 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.05%. A quarter ago, it was expected that this chipmaker would post earnings of $3.07 per share when it actually produced earnings of $3.08, delivering a surprise of 0.33%.Over the last four quarters, the company ...

KIRKLAND, Wash., Feb. 07, 2024 (GLOBE NEWSWIRE) -- Monolithic Power Systems, Inc. (MPS) (NASDAQ:MPWR), a leading company in high-performance power solutions, today announced the acquisition of Axign B.V., a Netherlands-based fabless semiconductor startup that specializes in programmable multicore DSP (digital signal processors). Axign's audio processors demonstrate near-zero distortion signals, with significantly reduced power consumption for automotive and consumer audio systems. Axign's technologies revol ...

KIRKLAND, Wash., Feb. 07, 2024 (GLOBE NEWSWIRE) -- Monolithic Power Systems, Inc. ("MPS") (NASDAQ:MPWR), a fabless global company that provides high-performance, semiconductor-based power electronics solutions, today announced financial results for the quarter and year ended December 31, 2023. MPS also announced that its Board of Directors has approved an increase in the quarterly cash dividend from $1.00 per share to $1.25 per share. The first quarter dividend of $1.25 per share will be paid on April 15, 2 ...

Monolithic Power Systems, Inc. (MPWR) is scheduled to report fourth-quarter 2023 results on Feb 7, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 0.33%. It pulled off a trailing four-quarter earnings surprise of 0.58%, on average.The Kirkland, WA-based company is likely to report lower revenues year over year in the fourth quarter. Fluctuating ordering patterns across the broader market, owing to business uncertainty, is expected to have had a negative im ...

In its upcoming report, Monolithic Power (MPWR) is predicted by Wall Street analysts to post quarterly earnings of $2.85 per share, reflecting a decline of 10.1% compared to the same period last year. Revenues are forecasted to be $452.13 million, representing a year-over-year decrease of 1.7%.The current level reflects a downward revision of 0.4% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their ini ...

KIRKLAND, Wash., Jan. 16, 2024 (GLOBE NEWSWIRE) -- Monolithic Power Systems, Inc. (MPS) (Nasdaq: MPWR), a fabless global company that provides high-performance, semiconductor-based power electronics solutions, today announced plans to report its financial results for the fourth quarter and year ended December 31, 2023. MPS will report its results after the market closes on Wednesday, February 7th and host its quarterly conference at 2:00 p.m. PT / 5:00 p.m. ET. The live event will be held via a Zoom webinar ...

KIRKLAND, Wash., Jan. 16, 2024 (GLOBE NEWSWIRE) -- Monolithic Power Systems, Inc. (MPS) (NASDAQ:MPWR), a fabless global company that provides high-performance, semiconductor-based power electronics solutions, today announced plans to report its financial results for the fourth quarter and year ended December 31, 2023. MPS will report its results after the market closes on Wednesday, February 7th and host its quarterly conference at 2:00 p.m. PT / 5:00 p.m. ET. The live event will be held via a Zoom webinar, ...